Seoul shares fell sharply on Monday after North Korean state television said North Korean leader Kim Jong-il had died, sending key large-cap stocks including Samsung Electronics tumbling. The Korea Composite Stock Price Index ended down 3.43 percent at 1,776.93 points, a three-week closing low and the biggest daily percentage drop in nearly six weeks. Earlier in the session, the index was down as 4.9 percent.
"Obviously investors have learned over time to react to North Korean news with some degree of calm, although it is hard to make simple comparisons this time," said Kim Seong-bong, a market analyst at Samsung Securities. Fitch ratings said on Monday that Kim's death did not warrant a negative move on South Korea's A+ rating. Foreign investors were modest sellers of a net 206.3 billion Korean won ($178.05 million) worth of stocks, while institutions were buyers of a net 102.7 billion won.
Key large-cap shares led falls, with LG Electronics , the world' No 3 handset maker, ending down 4.7 percent and LG Display, the world's No 2 flat panel maker, shedding 5.3 percent. Refiners lost ground. Shares in SK Innovation fell 6.4 percent and GS Holdings, the holding company of the country's No 2 refiner GS Caltex, lost 5.4 percent.
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